Sub-assemblies and turnkey systems that contributed significantly to the growth of HepcoMotion in recent years are not currently in such high demand. With the demise of many machine builders and capital investment projects on hold, the company is now seeing an increasing number of applications requiring components only.
In common with other manufacturers, it had witnessed a progressive move to system engineering and the supply of complete sub-assemblies in the last five years. Indeed much of its development work has been focused on introducing assembled products that provide more and more value for money. Integral drives and the inclusion of a mounting structure on its Heavy Duty systems are typical examples.
According to sales director, Chris Rees, the company has seen a big increase in products that are packed full of features to minimise the customer's need for secondary engineering. He cites the decrease in skills level in all sectors, with the exception of high-tech, as a major driver behind this trend. The dramatic drop in engineering apprenticeships during the 1980s also continues to take its toll.
Even today, despite the reintroduction of modern apprenticeship schemes by companies such as HepcoMotion, there is still an acute shortage of fresh blood coming into the profession here in the UK compared with other countries. One way of overcoming this is to progressively bridge the skills gap by making available applications knowledge and systems expertise to customers, as Chris Rees explains.
"We've added value to the service we provide as well as the products we supply. And yes, it has meant we've had to ramp up our skills level too. Our internal sales team is far more technically qualified than it was fifteen or twenty years ago. For example, each of them is competent at creating system designs in SolidWorks."
An important benefit of this trend is that it forms a greater partnership between customer and supplier and allows a company to recommend the best product for the job. That certainly doesn't mean the most expensive product either. In Mr Rees' experience, customers often underestimate the cost to themselves of designing and producing an associated part for their system. Take a special carriage plate as an example; the customer often mistakenly thinks that if it's not in the standard range it will cost the earth. HepcoMotion is geared up to producing small CNC batches of typically two to five items, and therefore looks upon the inclusion of a special part in a complete system as a 'standard' requirement. "We positively encourage our sales team to offer this service as it means we can make sure the complete system works well," says Mr Rees.
Reducing the maintenance burden
In recent years maintenance has become a significant issue for many customers. HepcoMotion's wheel products are now virtually maintenance free for most general linear motion applications; it's a case of grease it, leave it, forget it. But even though these products perform reliably in difficult applications, ongoing lubrication may still be preferred where high speed and high duty cycles are involved.
Product development has largely involved taking an existing idea and asking what can be done to add value to it. Automatic lubrication is case in point and is a feature now available on the company's Heavy Duty and Ring and Track systems. Mr Rees admits that this is not something his company would have considered five years ago, but with manufacturers seeking to be more cost competitive through automated production, the need soon became evident.
Marketing a product that is virtually maintenance free has also meant taking a different view on spares sales. This aspect of the business has declined over time but by way of compensation the company has enjoyed an enhanced reputation for product reliability and longevity. It has taken the view that a reputable product is of far greater value in engendering customer loyalty than short-term spares sales.
Since the turn of the millennium the growth area for HepcoMotion has been in systems technology and its manufacturing base in Tiverton reflects this trend. Last year it created a large, dedicated systems build area with enhanced testing facilities. The company has also adopted lean manufacturing techniques and committed further to cellular manufacturing to optimise flexibility and minimise lead times.
Despite the slowdown in the world economy the company was still able to grow its business by 5% in the UK in 2008. Moreover, operations in Asia Pacific beat forecast by 13% and France, by a no less than 24%. Although systems sales are down they continue to play an important part in the company's performance and no doubt will grow again when economic conditions are more favourable.
Finding new opportunities
Recent investment in market research has resulted in significant sales in relatively unexpected areas, as Mr Rees explains. "With projects in basic automation and materials/product handling currently low, we are picking up important business in non-traditional markets for components and small assemblies. We're selling linear motion as an alternative solution for companies who hadn't previously considered it as an option."
A lot of opportunities are also arising from the demand for a heavier duty linear system to provide greater reliability over comparatively lightweight, 'cheap and cheerful' products. For example a customer who would have successfully used roller technology for a commercial system would need to upgrade to a more robust alternative for one carrying a heavier load. And this type of sale also calls on the applications know-how that has become so fundamental to the business.